SBA lenders approved 281 7(a) loans to wholesale trade agents and brokers between October 2023 and June 2026, $134,368,000 from 91 lenders. The median loan was $204,500, above the national $150,300, but the median rate was 10.5%, above the national 10.25%, because these businesses have little collateral. Acquisitions were only 5% of loans, half the national 10.4%, at a median of $625,100. Lenders decide on the durability of the principals the agency represents, how concentrated the commissions are, and whether relationships belong to the business or to the owner.
| Measure | Wholesale Trade Agents and Brokers | All industries |
|---|---|---|
| SBA 7(a) loans approved | 281 | 162,355 |
| Median loan | $204,500 | $150,300 |
| Middle half of loans | $100,000 – $500,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 12.1% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.5% – 11.5% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 14 (5%) | 16,849 (10.4%) |
| Median acquisition loan | $625,100 | $693,000 |
| Lenders that made these loans | 91 | 1,648 |
| SBA 504 loans (real estate, equipment) | 22 | 16,714 |
Approvals FY2024 – FY2026 to date (1 Oct 2023 – 30 Jun 2026), cancelled loans excluded. Source: SBA 7(a) and 504 FOIA loan records, as of June 30, 2026.
- SBA 7(a) loans approved
- 281 (Oct 2023 – Jun 2026), from 91 lenders
- Median loan
- $204,500 (national $150,300)
- Median rate at approval
- 10.5% (national 10.25%)
- Acquisitions
- 14 loans (5%), median $625,100 at 9.75%
- Start-ups
- 3.9% of loans
- Median jobs supported
- 3
A business that sells goods it never owns
Wholesale trade agents and brokers (NAICS 425120) arrange sales of goods between businesses for a commission, without taking title to the goods. The code covers manufacturers' representatives who sell a line of products into a territory, import and export agents, commodity brokers, and business-to-business marketplaces that match buyers and sellers for a fee. The typical firm is small: the median loan supported 3 jobs.
That structure shapes everything a lender sees. There is no inventory to lend against, few fixed assets, and receivables that consist of commissions owed by the principals rather than invoices owed by many customers. The business's value is its principal relationships, its customer relationships and the people who hold them.
| Figure | Agents and brokers | National | Reading |
|---|---|---|---|
| Median loan | $204,500 | $150,300 | Larger than an asset-light business might suggest |
| Middle half of loans | $100,000 to $500,000 | A narrow, mid-sized band | |
| 90th percentile | $1,000,000 | The top tenth of loans starts here | |
| Loans of $1 million or more | 34 (12.1%) | About one loan in eight | |
| Median rate | 10.5% (middle half 9.5% to 11.5%) | 10.25% | Priced above national: little collateral |
| Fixed-rate share | 11.4% | Mostly variable-rate loans | |
| SBA Express | 34.2% of loans | Working capital and small needs | |
| SBA 504 | 22 loans, median $1,288,500 | The largest loans on the page |
Why the rate runs above the national median
Larger loans usually carry lower rates, because they fall under tighter SBA caps. Agents and brokers borrow more than the typical SBA borrower and still pay more: their median is 10.5% against a national 10.25%, and the middle half of rates runs up to 11.5%. The reason is collateral. SBA does not decline a loan for lack of collateral alone, but a lender whose only security is a commission stream and the owner's guarantee prices the loan toward the top of what SBA allows.
SBA's variable-rate cap is the base rate plus 6% from $50,001 to $250,000, plus 4.5% from $250,001 to $350,000 and plus 3% above $350,000. With the median at $204,500, much of this industry's lending sits in the plus-6% band, where the cap leaves a lender wide room to price. Where the business has little to pledge, lenders ask for what the owners have: every owner of 20% or more guarantees the loan, and on larger loans personal real estate often secures it. See SBA and the personal residence and current SBA loan rates.
A line of credit is harder here than in a distributor. Commissions due from a few principals are not the diversified trade receivables a borrowing base is built on, and a line commonly caps any single account at 20% to 25% of eligible receivables. Some lenders will lend against commissions owed by long-standing principals; many will not. See eligible and ineligible receivables.
The line card is the business
A rep agency's list of principals, its line card, is what the lender is really lending against. The questions an underwriter asks about it are specific, and an owner can answer most of them with documents already in the drawer.
| What the lender checks | Why it matters | The evidence |
|---|---|---|
| Share of commissions from the largest principal | One principal leaving can take most of the income | Commission statements by principal, two full years |
| Termination terms | Many rep agreements can be ended on short notice | The rep agreements themselves |
| Commissions after termination | Whether the agency is paid on orders it already won | The post-termination clause in each agreement |
| Tenure of each principal | Long relationships are harder to end | Start dates for each line |
| Principals being acquired | A new owner may bring sales in-house or change reps | The owner's knowledge of each principal's situation |
| Who holds the customer relationships | The owner alone, or a team | Staff list, and which accounts each person covers |
A rep agreement that can be ended on short notice is income the lender cannot count on for the life of a ten-year loan. Long tenure is the counterweight.
See customer concentration and debt and concentration limits.
Buying a rep agency or brokerage
Only 14 loans, 5% of the total, financed a change of ownership, half the national share. Those that did were large for the industry: a median of $625,100, at a median rate of 9.75%. A purchase of a rep agency is almost entirely goodwill, so the valuation rule nearly always applies: where the amount financed, less appraised real estate and equipment, exceeds $250,000, SBA requires an independent valuation and the purchase loan cannot exceed it. Goodwill can be financed over up to 10 years. See financing goodwill in an acquisition.
- Principal consents. Rep agreements are often personal to the agency or its owner and may not transfer without the principal's approval. Lenders want the important principals' consent before closing, not after. See change-of-control consents.
- No earnout. Private sales of rep agencies often tie part of the price to commissions retained after closing. SBA prohibits an earnout to the seller, so that risk has to be settled in the price. A seller note is allowed, but its payments cannot depend on results; it counts toward up to half of the equity injection only on full standby for the life of the loan, and otherwise it is debt the agency must cover.
- The handover. The seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026. In a business built on introductions, lenders want a plan for introducing the buyer to every principal and key customer.
- The buyer's background. Selling experience in the same product category counts for a great deal. See buyer industry experience.
- From 1 October 2026, every change of ownership needs financial due diligence and 1.25x coverage on historical results.
Buildings, start-ups and the large loans
The 22 SBA 504 loans in this industry had a median of $1,288,500, more than six times the 7(a) median. Some agents and brokers keep showrooms, sample rooms or warehouse space, and when they buy it, the loan is the largest the business takes. A 504 is typically 50% bank, 40% CDC and 10% borrower, and the business must occupy at least 51% of an existing building. See SBA 7(a) versus 504.
Start-ups were only 3.9% of loans. A new agency has no commission history, and lenders rarely lend against principal agreements that have not yet produced income. The more common path is a rep who leaves an established agency with a track record, and builds a book before borrowing.
Preparing an agent's or broker's SBA file
The SBA list comes first: business tax returns for 2–3 years, a P&L and balance sheet with a year-to-date P&L through last month-end, a debt schedule with copies of notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more. For an agency, add:
- Commission statements by principal for the last two full years
- Copies of the rep or brokerage agreements, with termination and post-termination terms
- A list of principals with the year each relationship started
- Sales by customer and territory, if the agency tracks them
- An owner resume showing the selling experience behind the relationships, which supports SBA Form 1919
- For a purchase, the letter of intent and the agency's latest full year of figures, never an older year
Related industries: durable goods wholesalers and industrial machinery wholesalers, which own their inventory and borrow differently, and insurance agencies, another business built on commissions. Transparent's book holds 278 lenders that write SBA 7(a) and 504; once the documents are in, Transparent builds the full lender package in a day, and on SBA loans the lender pays Transparent, not the borrower.
Common questions
- Can a manufacturers' rep agency get an SBA loan with no inventory or equipment?
- Yes. SBA lenders approved 281 loans to agents and brokers from October 2023 to June 2026. The loan rests on commission history and the owners' guarantees, and lenders often take personal real estate as collateral where the business has little to pledge.
- What rate do wholesale agents and brokers pay on SBA loans?
- The median rate was 10.5%, above the national 10.25%, with the middle half between 9.5% and 11.5%. Thin collateral is the main reason.
- Can I buy a rep agency with an SBA loan?
- Yes, though only 5% of loans in this industry did. The median acquisition loan was $625,100. Expect an independent valuation, principal consents before closing, no earnout, and at least 10% equity.
- Will a lender count commissions from a principal that can cancel on short notice?
- It will count them, but it weighs how long the relationship has lasted, what share of income it provides, and whether the agreement pays commissions on orders already won after termination.